Shares in the world's oldest stamp business Stanley Gibbons plummeted more than 30 per cent to just 3.8p after reporting half-year losses and saying it could sell more assets to bolster its finances.

In a trading update, the 162-year old company that deals in stamps, coins, antiques and fine wine, revealed a £3.5million trading loss in the six months to September 30, down from £3.9m in the same period last year.

On a pre-tax basis, losses narrowed from £6.4m to £3.1m.

Share slide: Shares in troubled stamp and coin specialist Stanley Gibbons plummeted more than 30 per cent to 3.8p after reporting half-year losses and saying it could sell more assets to bolster its finances

Revenue also fell four per cent to £16.6m as Stanley Gibbons bemoaned 'another difficult year' for the group.

The troubled firm has been hit by a slowdown in the stamps and collectables market and hampered by a string of failed historic acquisitions.

It is now trying to dump non-core assets and slash costs in an effort to raise cash.

To this end, the company said it has exceeded its original target of achieving £10m of annual cost reductions, with monthly employment costs falling by 75 per cent, while banking over £6m from asset sales.

Share this article

Stanley Gibbons confirmed in October that it was in default on its loans and is 'dependent on the bank's ongoing support'.

Today the firm said that it will need to refinance its debt before May and requires a £5m cash injection to fund growth and to 'normalise' working capital requirements.

Chairman Harry Wilson added: 'Whilst discussions with the bank remain constructive there is a risk that the quantum of debt which needs to be refinanced, together with the investment and working capital requirement cannot be obtained within the current capital structure.

Gloomy picture: Today the firm said that it will need to refinance its debt before May and requires a £5m cash injection to fund growth and to 'normalise' working capital requirements

'The board will consider raising further equity or asset sales, however the board is of the view that whilst alternative finance will be available it is likely to require restructuring of the current indebtedness as part of the solution.'

He said that the board has received offers of finance from existing and new investors, including an offer of equity conditional on the restructuring of the existing debt.

Earlier this year, Stanley Gibbons put itself up for sale as part of a review being led by finnCap, with private equity firm Disruptive Capital thought to be interested.